President Dr Mohamed Muizzu has announced that the Government will launch an equity financing scheme for housing later this year, under which recipients will not have to repay the equity provided by the Government.
Speaking about housing during a press briefing held yesterday, President Dr Muizzu said the new scheme would cover part of the equity that banks require from customers seeking loans to build homes, with the Government providing the amount free of charge.
Under the scheme, the Government will provide each person with a specified amount of equity that will not have to be repaid. President Dr Muizzu said the amount provided under the new scheme would be equivalent to five per cent.
The President noted that the affordable housing loan currently offered through Bank of Maldives (BML) Islamic carries a five per cent equity requirement, describing it as a significant concession for the public. He added that the loan scheme had received a positive response.
President Dr Muizzu said the Government plans to introduce a much broader equity finance loan scheme later this year, under which it will provide equity through a Government fund. He said each person would receive a specified amount of equity financing.
The President said the assistance would make it easier for family members to come together to meet the equity requirement for financing a home, as they would not have to repay the portion provided by the Government. He added that Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib would disclose further details of the scheme.
Housing loans for building and purchasing homes previously required 10 per cent equity. BML has since reduced the equity requirement by five percentage points to five per cent.
President Dr Muizzu also expressed confidence that, with the opportunities facilitated by the Government, many people would be able to secure housing by around the middle of 2028.